20 Jan

Suppose we have the following Treasury bill returns

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Question: Suppose we have the following Treasury bill return…

Suppose we have the following Treasury bill returns and inflation rates over an eight year period:

 

Year Treasury Bills Inflation
1 11.47% 14.07%
2 12.41 17.11
3 10.08 11.34
4 9.33 8.93
5 9.90 11.34
6 12.28 13.85
7 15.19 18.09
8 17.11 18.07
What was the average real return for Treasury bills over this period?

 

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